Development-Related Problems and Asymmetries in the Eurozone: The Challenge of the “Strategic” Approach ^☆

Abstract

The Eurozone is characterized by large and persistent social inequalities and economic disparities alongside productive and technological asymmetries between its advanced and peripheral countries. This divergence has been expected from countries that have different social, economic, and political structures. However, without pragmatic interventionist policies, European integration has been very problematic and there can likely be more asymmetries and other difficulties as long as aggregate demand-based development action continues to be neglected.

The paper begins with a discussion of regional and industrial disparities and problems in the context of the European Union (EU) and Eurozone. The next main section evaluates European regional and industrial policies since the Second World War. The final parts conclude with a special reference to Japan and the United States, and a comparison between them and the EU, and offer alternative policy recommendations based on the developmental state line of argument.

Citation

Karagiannis, N. and Zajicek, E.K. (2017), "Development-Related Problems and Asymmetries in the Eurozone: The Challenge of the “Strategic” Approach ^☆ ", Economic Imbalances and Institutional Changes to the Euro and the European Union (International Finance Review, Vol. 18), Emerald Publishing Limited, Leeds, pp. 45-63. https://doi.org/10.1108/S1569-376720170000018004